Gold has all but shaken out the most stern bulls during this 6-8 month consolidation after the August 2020 capitulation highs. This is a pure chart post discussing what has happened in the past 20 years when similar technical setups have presented themselves. Big Picture There have been a few folks in the charting world that have stumbled on the following comparison. Though there are only 2 data points to compare, I find it interesting that both of the cups in the following picture have nearly the same length, about 8-9 years.
Following the 1996-2004 cup was a large consolidation phase in 2004, and again in 2005. Gold proceeded to rise over 300% from the 2004 highs to 2011. Can we get the same outcome again? That would put gold at over $8000/oz, which given history is not out of the question.
The 50 Week Moving Average The 50 Week Moving Average (WMA in this post) is the guidepost for bull and bear markets. Retests on it have proven over time to be excellent buying locations. Combined